Viewing Accumulation/Distribution for better plays...

wallmann

Junior member
17 0
Accumulation Distribution tracks the relationship between price and volume and acts as a leading indicator of price movements. The indicator is based on the premise that the more volume that accompanies a price move, the more significant the price move. It provides a measure of the commitment of bulls and bears to the market and is used to detect divergences between volume and price action - signs that a trend is weakening.

Accumulation Distribution is an enhancement of the On Balance Volume indicator. It first compares opening and closing prices to the trading range for the period, the result is then used to weight the volume traded.

The strongest signals on the Accumulation Distribution are divergences:

Go long when there is a bullish divergence.

Go short when there is a bearish divergence.

Stop-losses should be placed below the most recent low (when going long) and above the latest high (when going short).

When the Accumulation/Distribution moves up, it shows that the security is being accumulated as most of the volume is associated with upward price movement. When the indicator moves down, it shows that the security is being distributed as most of the volume is associated with downward price movement.

Divergences between the Accumulation/Distribution and the security's price imply a change is imminent. When a divergence does occur, prices usually change to confirm theAccumulation/Distribution. For example, if the indicator is moving up and the security's price is going down, prices will probably reverse.

To view this on a chart go to:

http://www.prophetfinance.com/charts/pc.asp?stay=true

Plug in your symbol

Hit Go next to the symbol

Right under where you typed in the symbol, click on + sign next to Technical Analysis

Then choose Acc/Distrib

Once the chart shows up, you can move your pointer back and forth over the graph and watch the numbers change and if you want to zoom in, just hold your mouse button down as you move across the chart, once you let up, the area you highlighted will be shown, pretty neat!
 

Skimbleshanks

1
2,325 16
Wallmann

Your posts here appear to be with the sole intention of promoting your paid-for newsletter. Therefore your link to the newsletter has been removed, and I would ask you not to continue posting promos for your paid services.

I may be silly, but I always thought that those who could not make money out of trading had to turn to being a vendor. If I have got this wrong, please feel free to correct me. :)
 
 
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